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Qatar Market Commentary
 The QE index rose 0.2% to close at 9,909.9. The Transportation
and Telecoms indices led the gains. The index rose on the back
of buying support from non-Qatari shareholders despite selling
pressure from Qatari shareholders.
 Qatar Gas Transport Co. and Qatari Investors Group were the
top gainers, rising 3.8% and 2.6% respectively. Among the top
losers, Qatar General Ins. & Rein. Co. fell 5.0%, while Salam
International Investment declined 1.5%.
 Volume of shares traded on Sunday declined by 13.7% to 5.8mn
from 6.7mn on Thursday. However, as compared to the 30-day
moving average of 5.6mn, volume for the day was 2.7% higher.
Qatar Gas Transport Co. and Masraf Al Rayan were the most
active stocks, contributing 23.2% and 14.4% to the total volume
respectively.
Source: Qatar Exchange (* as a % of traded value)
Earnings
Earnings Releases
Company Market Currency
Revenue
(mn) 2Q2013
% Change
YoY
Operating Profit
(mn) 2Q2013
% Change
YoY
Net Profit (mn)
2Q2013
% Change
YoY
Sudatel Telecom Group
(STG)
Abu Dhabi AED – – – – -19.0 N/A
Source: Company data, ADX
News
Qatar
 Qatar leads MENA M&A deals in 1H2013 – According to a
report by E&Y, Qatar led the Middle East & North Africa (MENA)
region with four out of the top 10 merger & acquisition (M&A)
deals by value, followed by the UAE during 1H2013. The largest
sovereign wealth fund (SWF) deal was the Qatar Foundation’s
acquisition of 5% stake in India-based Bharti Airtel Ltd for
$1.26bn. The majority of SWF and private equity activities were
in the telecommunications sector. The value of disclosed
inbound deals in the MENA region increased from $5.1bn in
1H2012 to $10.6bn in 1H2013, indicating a rise of 108%.
However, outbound deals dropped by 37% from $10.5bn in
1H2012 to $6.6bn in 1H2013. (Peninsula Qatar)
 Moody’s: QIA well-cushioned to absorb adverse oil
scenario – According to Moody's, the Qatar Investment
Authority (QIA), has a more modest cushion of SWF assets as
buffer for public finance in case of an adverse oil price scenario.
Moody's said Qatar with its estimated gross assets of $175bn in
2012, has a modest cushion of SWF assets to its 2012
government expenditure, given the late monetization of its
hydrocarbon wealth, but this is partially offset by rapid asset
growth and a low fiscal break-even oil price. Moody's also said
that Kuwait has the largest cushion of SWF assets at almost six
times the amount of annual government expenditures, followed
by the UAE and Saudi Arabia. Although Qatar has a modest
cushion, Moody's said Oman and Bahrain are in a fragile fiscal
position. (Gulf-Times.com)
International
 CBI raises UK growth forecasts as recovery builds
momentum – The Confederation of British Industry (CBI) raised
its forecasts for the UK’s economic growth this year and the
next, based on strengthening business and consumer
confidence and improving credit conditions. The business
lobby’s quarterly forecasts find the economy expanding 1.2%
this year and 2.3% in 2014, which is up from 1% and 2%
projected in May. The CBI expects household spending to
strengthen in 2H2013 and through 2014, along with a stable
labor market and slowing inflation, which will help shore up
incomes. CBI also said the Bank of England’s forward guidance
will help boost business and consumer confidence. (Bloomberg)
 New home prices in China rise as nation seeks long-term
policy – China’s new home prices across four major cities rose
the most since January 2011, on speculation that the
government will refrain from imposing tighter curbs. Guangzhou
and Shenzhen led the rise with a 17% jump, while prices in
Beijing and Shanghai increased 14% in July, as 69 out of 70
cities tracked by the government climbed from a year earlier.
(Bloomberg)
Regional
 S&P: GCC insurance market grows to $16bn in 2012 –
According to a report by S&P, the insurance sector in the GCC
region grew to nearly $16bn in terms of gross premiums written
in 2012. The insurance sector witnessed a growth over 10% in
the region’s largest markets during the year. Ample capital is
available in the industry to back the growth in insurance
premiums. S&P said a small number of well-established insurers
are reaping the benefits of the fast-growing insurance markets in
the GCC region. S&P also mentioned that inflated valuations
and a reluctance to relinquish control are preventing smaller
insurers from consolidating. (Peninsula Qatar)
 Saudi crude production, exports drop in June – According to
the data released by the Joint Organization Data Initiative
(JODI), crude oil production in Saudi Arabia inched down to
9.642mn barrels per day in June 2013, as compared to 9.657mn
bpd a month earlier, while exports fell 6.1% during the same
period. The Kingdom exported 7.315mn bpd of crude oil and
condensate in June, down from 7.789mn bpd in May. (Gulf-
Times.com)
 Saudi Housing Minister approves SR4bn development
contracts – Saudi Arabia's Housing Minister Shuwaish Al-
Duwaihi has signed eight new contracts worth SR4bn to develop
26 square kilometers of land in the Kingdom. The contracts will
develop land across a number of cities in the Kingdom for
providing housing to accommodate 250,000 citizens.
(Bloomberg)
Overall Activity Buy %* Sell %* Net (QR)
Qatari 62.02% 67.84% (12,808,499.01)
Non-Qatari 37.97% 32.17% 12,808,499.01

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 SAICTZ signs SR550mn contract to develop Industrial
City’s next phase – The Saudi Authority for Industrial Cities &
Technological Zones (SAICTZ) has signed a SR550mn contract
to develop the second part of the first phase of the third
Industrial City in Dammam. (Bloomberg)
 Al-Khodari Sons bags SR24.7mn O&M contract – Abdullah
Abdul Mohsin Al-Khodari Sons Company has signed a contract
worth SR24.7mn with the Ministry of Water & Electricity for the
operation & maintenance (O&M) of a sewage treatment plant at
Jazan Migrants Housing. The financial impact of this project is
expected to be visible in 3Q2013. (Tadawul)
 Arabian Pipes, Petrofac sign SR43mn pipe contract – The
Arabian Pipes Company has signed a SR43mn contract with
Petrofac Saudi Arabia (Petrofac). The contract entitles Arabian
Pipes to manufacture welded pipes for Petrofac at its factory in
Jubail Industrial City. (Tadawul)
 Siemens, E A Juffali expand manufacturing facility in
Jeddah – Siemens and its partner E A Juffali & Brothers have
expanded their low and medium voltage panel manufacturing
facility in Jeddah. This facility is equipped with modern
technology and has been ISO certified for following strict
environmental, health and safety standards. (AME Info)
 UAE banks lend at the fastest rate in two years – According
to the data published by the UAE Central Bank, UAE's financial
sector has issued the most number of new loans in June 2013
since 2011. The net loans & advances increased by AED16.3bn
during June 2013 to reach AED1.14tn, reflecting the highest rate
of credit growth since September 2011. Deposits rose by
AED8.4bn during the month increasing by 7.4% in 2013.
(Bloomberg)
 Etihad Rail signs MoU with Swiss logistics firm – Etihad Rail
has signed a MoU with a Swiss logistics company, Bertschi. The
agreement will enable the logistics company to use Etihad Rail’s
network for efficient and safe cross-border transport of
equipment such as hazardous and non-hazardous chemicals.
This will comprise trips between the UAE and other GCC
countries, with a strong focus on Saudi Arabia. (AME Info)
 DCAA set to achieve 665,000 aircraft movement by 2020 –
The Dubai Civil Aviation Authority (DCAA) plans to achieve a
target of 665,000 aircraft movements by 2020 and expects
nearly 9% YoY growth in 2013. DCAA has projected 375,000
aircraft movements for the Dubai International and Dubai World
Central airports in 2013 as compared to 344,656 in 2012.
Aircraft movements increased 7.4% YoY in 1H2013. The DCAA
aims to reach 355,000 passenger aircraft movements in 2013,
385,000 in 2014 and 416,650 in 2015. Similarly, the target for
cargo aircraft movements has been fixed at 28,250 in 2013,
31,500 in 2014 and 35,000 in 2015. (Bloomberg)
 Orion Holding acquires AED57.7mn property from GGICO –
Dubai-based Orion Holdings has acquired a property worth
AED57.7mn from Gulf General Investment Company (GGICO)
in the Axis Residences community at Dubai Silicon Oasis.
Through this acquisition, Orion will now own a total of 102 units
in Axis Residences. (AME Info)
 ADAC plans to launch new VIP terminal – The Abu Dhabi
Airports Company (ADAC) is planning to establish a new VIP
terminal as a part of its Capacity Enhancement Program at the
Abu Dhabi International Airport. This new VIP terminal will be
operated by National Aviation Services and is scheduled to open
in 4Q2013. (GulfBase.com)
 SEHA announces expansion of Al Wagan Hospital – The
Abu Dhabi Health Services Company (SEHA) has begun work
on the expansion and renovation of Al Wagan Hospital located
in the Eastern Region of Abu Dhabi. This expansion will enable
the hospital to deliver the highest internationally recognized
standards in healthcare to the residents of Al Wagan. (AME Info)
 Al Hassan Engineering obtains AED69.45mn subcontract
from Siemens – Al Hassan Engineering Company Abu Dhabi, a
unit of Al Hassan Engineering Company has obtained a sub-
contract worth AED69.45mn from Siemens for civil and
associated building works of the new 400/220/33 kV substation
at Mirfa, Abu Dhabi. These works are expected to be completed
by August 2014. (MSM)
 BMI: Omani construction sector to grow 8.4% to OMR1.7bn
– According to a report released by Business Monitor
International (BMI), Oman’s construction sector is expected to
grow by 8.4% to OMR1.7bn. BMI estimated the real growth of
11.9% YoY for 2012, with industry value to reach OMR1.5bn.
(GulfBase.com)
 OPWP plans two new projects – The Oman Power & Water
Procurement Company (OPWP) is planning two new water
sector projects in Quarayyat and Suwaiq, which will expand its
capacity by 405,000 cubic meters per day by 2018.
(GulfBase.com)
 FSB led JV gets fifth package of Batinah Expressway – A
joint venture led by Federici Stirling Batco (FSB) has obtained
the fifth package of the Batinah Expressway project at a cost of
OMR132.6mn. FSB partnered with a European construction
company Ferrovial Agroman to mount a successful bid for this
keenly contested package, covering a 41 kilometers of the
ambitious carriageway project from Sohar to Liwa. The JV will
undertake 17mn cubic meters of earthworks and use 32,000
tons of reinforced steel. (GulfBase.com)